Post on 20-Jan-2015
description
D3O Business Model Analysis
By: Chung Wing Tai, Julian Koo, Justin Lin,
Jason Yeo, Ryan Wee, Tham Kai Sheng
D3O Technology
What is D3O?
• D3O is a patented protective material that
utilizes enhanced chemistry to produce high
performance impact protection solutions.
How does D3O work?
• D3O comprises a shear-thickening
compound, whose molecules reversibly lock
together on impact.
How is D3O better?
Less transmitted force
= Less pain
• Less force is transmitted on impact
How is D3O better?
• CE Level 2 Certification
• D3O passed Level 2 of
prEN1621-1, making it
safe for motorcyclist
protection
Price Comparison
• D3O is premium priced but not exorbitant
Who would use D3O?
• People looking for dependable protection that is
lightweight and flexible. o Professional Athletes
o Those facing occupational hazards (eg. Military, law
enforcement & industrial workers)
o Users of expensive tech gadgets
• High speeds &
Dangerous
terrain
• Prone to serious
injuries from falls
and tumbles
• Comfort helps
improve focus
• Mobility required
for performance
• Covers virtually all
parts of the body
• Breathable
protection
• Flexible pads
• Confidence in
protection
Professional Athletes
• Covers virtually all
parts of the body
• Breathable
protection
• Flexible pads
• Confidence in
protection
Professional Athletes
Military, Law enforcement &
Industrial workers
• High risks of injury due
to exposure to hazards
• Flexibility and
mobility required
for top
performance
• Fear of injury may
impede operations
• Injuries delay
work progress
and incur costs
Tech Gadget Users
• Expensive Tech Gadgets
like Apple products
• Risk of damage due to
accidental dropping/ knocking
• Potential financial, time,
emotional loss as well as
major inconveniences
Other Applications
• People looking to harness D3O’s advanced
properties
• For example, tennis racquets with adaptive
rigidity
Head YouTek D3O
Series Tennis Racquet
D3O Labs
The Big Picture
Value Proposition of
D3O Labs
• Access to the D3O
technology
• Engineering, research
and design services
• Assistance in the
manufacturing process
Value Proposition to Partners
Open
Innovation
Partner Selection
Partner Selection
• Consumer firms: o Protective gear
o Sports equipment
• Industrial firms: o Safety shoes
• Defence: o Protective gear
Technology Adoption Strategy
• Targeting early adopters o E.g. Pro-athletes and special
forces
• Why? o Most willing to try new technology
and to pay a premium for it
o Strong influence on market
opinion
• Hence, D3O needs to choose
premium partners that would
appeal to these early adopters.
Value Capture
and
Scope of Activities
Methods of Value Capture
• Licensing & Partnerships
• Services for Partners
• Internally-Developed Products - XERGO
Licensing & Partnership
• Sales have been growing ~100% annually
Services for Partners
• D3O captures revenue through customized
engineering and design services
Sales & Production
• XERGO – Limb Protectors for motorcyclists
• No 3rd parties involved in the design
Research & Development
• D3O is constantly improved via R&D to improve its
features, so as to maintain D3O's relevance & edge in
the market
• For example, D3O released three unique composites to
general customers (XT, ST and Shock+)
Strategic Control
Current Barriers to Entry
• Intellectual property protection o Patenting of chemical formula
o Patenting of the design of protective products
o Allows them to protect and appropriate their IP, and
lock-in customers for a period of time via contracts
Current Barriers to Entry
• Controlling the manufacturing of D3O products o Partners not involved in the manufacturing of D3O
o Proprietary knowledge remains with D3O
D3O manufactures to spec
D3O delivers to partner
Partner sells completed product
Current Barriers to Entry
• Reputation o Premium reputation in the field of protective
materials
o Control of marketing communications and product
launch strategies, even by partners
Competitors
• Poron XRD
o It is based on a urethane based polymer foam which
solidifies momentarily on impact
o Uses the amorphous properties of urethane
molecules, which become rigid on impact.
Poron XRD
Case study comparing
D3O and Poron XRD
• Specific offering in motorcyclist protection
• Comparing two back protectors for
motorcyclists:
Poron XRD:
B-Guard
D3O:
Flo1
D3O Flo1 vs Poron XRD B-Guard
D3O Flo1 vs Poron XRD B-Guard
• Comparing two back protectors for
motorcyclists using spec sheets
D3O:
Flo1
Poron XRD:
B-Guard
Strategy Canvas:
D3O Flo1 vs Poron XRD B-Guard
Dimensions of Performance
Strategy Canvas:
D3O Flo1 vs Poron XRD B-Guard
User Comfort Safety Others
Dimensions of Performance
What can D3O do better?
• D3O is a thermosetting polymer
• Synthesizing process is toxic
• Life expectancy of 2 to 3 years
Value Proposition
Value Proposition
• D3O as a recyclable material
• Reduce the toxicity of synthesizing process
of D3O
• Increase durability of the product
Customer Selection
• Military
o A market that is worth approximately US$16 million
per country per year
o Prospective customers, Eg. US, Germany, France,
Israel, Singapore
• Elderly
o Focus on gerontechnology
o Shock absorbent clothing for the aging
population
o Produce hip and back protectors for the
elderly
Customer Selection
Customer Selection
• Children o child apparels infused with d3o technology
o eg. Impact resistant beanies for kids
o child-safe house appliances
o eg. D3O sharp corner protectors
Scope of Activities
• Partner with bigger brands, especially the popular
mass-market brands, so as to capture market share
• Acquisition or partnership with competing
technologies to improve D3O's competitive edge
Scope of Activities
• Constant R&D in different fields to improve D3O and
its complementary technologies. (e.g. D3O incorporated
into health care products like prostheses)
Strategic Control
• Create greater barriers to entry
o Exclusive contract agreements with partners
o Develop a family of complementary products to
harness indirect network effects
Strategic Control
• Scaling up operations o Has a team of less than 100 employees
o D3O works on 20 to 30 projects at any one time
o Hire more people to meet demand and maintain
quality service
Thank you
By: Chung Wing Tai, Julian Koo, Justin Lin,
Jason Yeo, Ryan Wee, Tham Kai Sheng
FAQs
What is D3O composed of?
• It comprises a dilatant compound known as
Polyborodimethylsiloxane (PBDMS),
distributed in a foam matrix